STAND. COM. REP. NO. 3475

Honolulu, Hawaii

RE: H.B. No. 2214

H.D. 1

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2214, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO RENTAL MOTOR VEHICLE SURCHARGE TAX,"

begs leave to report as follows:

The purpose of this measure is to reduce the $3 per day rental motor vehicle surcharge tax to $2 per day.

Additionally, this measure also clarifies that, in order for a motor vehicle lessor to be exempt from the rental motor vehicle surcharge tax when renting a replacement vehicle to a lessee whose vehicle is being repaired, either the lessor or the repair dealer must keep a record of the repair order.

Your Committee finds that under current law, the exemption applies only if the lessor retains the repair order. By extending the exemption to also apply when the repair dealer keeps a record of the repair order, this measure will reduce duplicative recordkeeping requirements.

Your Committee has amended this measure by:

(1) Retaining the statutory provisions that increase the tax to $3 per day from September 1, 1999, to August 31, 2007;

(2) Changing the effective date from July 1, 2006, to July 1, 2050, to facilitate further discussions; and

(3) Making technical nonsubstantive changes for the purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2214, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2214, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair